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Should Value Investors Buy Brighthouse Financial (BHF) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Brighthouse Financial (BHF - Free Report) . BHF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 3.26, while its industry has an average P/E of 7.42. Over the past 52 weeks, BHF's Forward P/E has been as high as 8 and as low as 1.65, with a median of 3.11.

Investors will also notice that BHF has a PEG ratio of 0.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BHF's industry currently sports an average PEG of 0.76. Within the past year, BHF's PEG has been as high as 0.74 and as low as 0.34, with a median of 0.38.

These are just a handful of the figures considered in Brighthouse Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BHF is an impressive value stock right now.


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